Shiba Inu's Shibarium Adds Burn Gateway, Could Drive SHIB Price Up

As part of their Shibarium layer-2 solution, the Shiba Inu team has unveiled a burn gateway. It is standard practice in the industry to burn tokens

Shiba Inu's Shibarium layer-2 solution now has a burn portal, a common method in the crypto space to reduce the supply of a particular token.

During the London hard fork, a portion of the transaction fees was burned with the implementation of Ethereum Improvement Proposal (EIP) 1559. This was achieved by introducing a configurable block size that could serve as a proxy for network demand, reports U.Today.

The upgrade introduced a so-called "base fee," which is a required minimum fee that scales with network usage and is burned at all times by the protocol. This sparked the narrative around deflationary Ethereum.

Shibarium's Burn hard fork introduced the EIP-1559 functionality.

Flat Fee Set for Each Shibarium Transaction to Be Burned

The burn contract sets a flat fee for each Shibarium transaction to be burned. Once users have accumulated enough BONE tokens, the newly launched ShibTorch will enable them to start burning.

Currently, a minimum of 100 BONE tokens is required to initiate a burn. After users connect their wallets, they will be able to see the transaction hash and the exact amount of SHIB that will be burned.

It is worth noting that only 70% of the base fees will be incinerated, while the remaining amount is directed to the national treasury. BONE tokens can be swapped for SHIB tokens on the Ethereum network.

Shibarium Burn Portal May Boost SHIB Price

Ultimately, these SHIB tokens will be taken out of circulation. The burn portal's release is likely to be a bullish catalyst for SHIB as it can drastically reduce the token supply.

According to data from CoinGecko, SHIB went up by 0.8% over the last day.

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